Azerbaijan Tax Calculator (2026)
Income tax rates and take-home pay for Azerbaijan
Azerbaijan Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Exempt Zone (0-8,000 monthly) | AZN 0 - AZN 96,000 | 0.0% |
| Progressive Rate (Above 8,000 monthly) | AZN 96,000+ | 14.0% |
Social Security Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Base Rate | AZN 0 - AZN 2,400 | 3.0% |
| Excess Rate (Above 200 monthly) | AZN 2,400+ | 10.0% |
Unemployment Insurance Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Flat Rate | AZN 0+ | 0.5% |
Mandatory Medical Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | AZN 0 - AZN 96,000 | 2.0% |
| Excess Rate (Above 8,000 monthly) | AZN 96,000+ | 0.5% |
Key Facts
Tax Year
2025
Currency
AZN
Top Rate
14.0%
Brackets
2 brackets
Tax-Free Threshold
AZN 96,000
Social Contributions
3 items
Assumptions
- · Worker profile assigned to the non-oil-gas and non-government sector tax regime.
- · The 7-year grace period for the non-oil-gas sector (2019-2026) is applied.
- · Monthly tax and social contribution thresholds have been annualized for the calculator.
- · Social contributions are not deductible from gross income for income tax purposes under the simplified employment regime.
Frequently asked questions
How much income tax do I pay in Azerbaijan?
Azerbaijan has a two-bracket income tax system with a unique structure. The first 96,000 AZN (8,000 AZN monthly) is completely tax-exempt, and income above that is taxed at a flat rate of 14%. This means many lower-earning workers pay zero income tax, while higher earners face a straightforward progressive rate.
What are the social contributions I need to pay as an employee in Azerbaijan?
As an employee in Azerbaijan, you contribute to three mandatory social programs: Social Security (3% on the first 2,400 AZN annually, then 10% above that), Unemployment Insurance (0.5% flat on all income), and Mandatory Medical Insurance (2% up to 96,000 AZN, then 0.5% above that). These contributions are deducted from your salary but do not reduce your taxable income for income tax purposes.
Is there a difference in taxes for workers in the oil and gas sector versus other sectors?
Yes, Azerbaijan applies different tax regimes depending on your sector. The calculator uses the non-oil-gas and non-government sector tax regime, which currently benefits from a 7-year grace period through 2026. Workers in the oil and gas sector would face different tax treatment, so it's important to clarify your employment sector when calculating your take-home pay.
What is my take-home pay if I earn 120,000 AZN annually in Azerbaijan?
With 120,000 AZN annual income, the first 96,000 AZN is tax-free, and the remaining 24,000 AZN is taxed at 14% (3,360 AZN in income tax). You would also pay social contributions of approximately 3,950 AZN across all three programs. Your total deductions would be roughly 7,310 AZN, leaving you with approximately 112,690 AZN in take-home pay.
Are social contributions deductible from my gross income for tax purposes?
No, social contributions are not deductible from your gross income when calculating income tax in Azerbaijan's simplified employment regime. This means you pay income tax on your full gross salary, then social contributions are deducted separately from your take-home pay.
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